"Americans are entering another brutal winter paying more for power than ever, and the cold only magnifies a trend that has been building for years: electricity is getting structurally more expensive. Even as overall inflation cools, utility bills are getting higher-the retail price of household power is up 21% in just three years. Following an Arctic freeze and a historically cold winter in many parts of the U.S., many people are posting shockingly high bills on Reddit, Nextdoor, and TikTok."
"The price of electricity itself has risen sharply since the pandemic era, and monthly bills have followed. Consumer advocates estimate that residential electricity costs are up close to 30% for many households since 2021 once rate hikes, fees and fuel adjustments are folded in. The average U.S. residential electricity price climbed from about 13.66 cents per kilowatt-hour in 2021 to 15.04 cents in 2022, 16.00 cents in 2023, and 16.48 cents in 2024, according to federal data."
Residential electricity prices have risen markedly since 2021, increasing roughly 21% in retail price per kilowatt-hour and pushing average monthly bills from about $121 to $144. Consumer advocates estimate total household electricity costs up close to 30% for many when rate hikes, fees and fuel adjustments are included. Winter cold snaps and higher electric heating demand produce usage spikes, while grid reliance on natural‑gas generation for winter peaks raises wholesale prices and capacity payments. Structural factors such as an aging grid, fuel-price volatility, and a large investment cycle are contributing to persistently higher power costs.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]